If a Fed Funds rate of 2.25% is strangling the economy, then it couldn’t have been very robust to begin with.
If a Fed Funds rate of 2.25% is strangling the economy, then it couldn’t have been very robust to begin with.
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The problem is when short term rates are equal to or higher than longer term rates due to the Fed’s manipulation. Rates should be determined by the market, not the elites at the Federal Reserve.
Rates in absolute terms don’t mean much.
“If a Fed Funds rate of 2.25% is strangling the economy, then it couldn’t have been very robust to begin with.”
Don’t spoil the story with facts ‘n stuff. Next you’ll be pointing out that the Fed Funds rate was higher than that in every year of the Reagan boom.
> If a Fed Funds rate of 2.25% is strangling the economy, then it couldn’t have been very robust to begin with. <
The average Fed Funds rate is around 4.8%. But everyone is getting all worked up about a rate that is less than half of that. So yeah, you might be right.
I agree. The economy doesn’t seem to be as fundamentally sound as it should be. Obama left behind an economy that was hampered in many ways but Trump has overcome much of that. The problem may lie in just the people participating in the American economy.
There are a lot of cynical, entitled liberals out there. Capitalism is a foreign, evil concept to them. Men used to be the engine of prosperity and they strove to make as much money as they could. Is it worth it anymore in the face of #MeToo at work or affirmative action everywhere you look? I look around and it seems American society has a sickness, one that reeks of complacency and bitterness.
It wasn’t and that’s why Trump warned the Fed. Economies around the world are slowing down and may be heading into recession. At least the Fed have decided not to raise for the rest of 2019.
Gosh - sounds good until one questions why the Fed would try to put the brakes on a non-robust economy.....